Long term trend: Up
Medium term trend: Down
Significant Levels: 1.6270 (Horizontal Resistance), 1.5920 (Horizontal Support), Downtrend Line, Fibonacci Retracement
The pair broke above the downtrend line indicating that the Long term trend could be getting back its momentum. This is just a small move above the trend line so still, we cannot confirm if the uptrend is back in the game. The solid confirmation could be if the price breaks above the 1.6270 (Horizontal Resistance) level. That would be the time we would consider going Long. But for now, every rally is a Sell. If the price reached the resistance, we would evaluate the price action that will form and from that, we would know what trade to take. Though, we would prefer to go Short as that is the sentiment right now and this resistance is also the 0.618 level in the Fibonacci Retracement. This would be a good retracement before the price continues to go down.
Trade well.
Medium term trend: Down
Significant Levels: 1.6270 (Horizontal Resistance), 1.5920 (Horizontal Support), Downtrend Line, Fibonacci Retracement
The pair broke above the downtrend line indicating that the Long term trend could be getting back its momentum. This is just a small move above the trend line so still, we cannot confirm if the uptrend is back in the game. The solid confirmation could be if the price breaks above the 1.6270 (Horizontal Resistance) level. That would be the time we would consider going Long. But for now, every rally is a Sell. If the price reached the resistance, we would evaluate the price action that will form and from that, we would know what trade to take. Though, we would prefer to go Short as that is the sentiment right now and this resistance is also the 0.618 level in the Fibonacci Retracement. This would be a good retracement before the price continues to go down.
Trade well.